Kerala-based Microfinance firm 
Hope Microcredit Finance (India) Pvt Ltd (HMFL) has raised first round of funding of Rs.10 Cr ($2.3 Mn) from Incofin's Rural Impulse Fund II.
The fund raised will be used to increase its loan book and to fund its expansion plans by opening more branches.
Transaction Reference: Microfinancefocus.com
Founded by Raju Kuriachen, HMFL started as an NGO in August 2005 and then registered as a NBFC. It started its microfinance operations in April 2010 and is operational in Kerala & bordering districts of Tamil Nadu and Andaman Islands.
As on November 2010, HMFL had a base of 80,187 clients across of 42 branches with a loan book of Rs.259.4 Mn ($5.8 Mn).
Incofin has made four investments across India in the last three years. This year in June, it invested Rs.4.5 Cr in Fusion Microfinance, a Delhi based start-up.
Last year in October, Incofin invested Rs.10 Cr in Karnataka-based Grameen Koota. Incofin’s first investment in Indian microfinance space was in North-East based microfinance institution-Asomi Finance through its Rural Impulse Fund I for a 34% stake.
This year at the end of August, Pune-based MFI, Suryoday Microfinance had raised second round of funding of Rs.17.5 Cr from Lok Capital and from its existing investor, Aavishkaar Goodwell.
Hyderabad-based Bhartiya Samruddhi Finance Ltd (BFSL) is also planning to raise up to Rs.250 Cr private equity to fund its expansion plan.
Recently, Andhra Pradesh government has urged RBI to bar MFI's from tapping capital markets and seeking private equity investments arguing this has made micro lenders more profit hungry.
Grameen Foundation, promoted by Bangladesh social entrepreneur Mohammad Yunus, and its affiliates, Grameen Capital India and Grameen-Jameel Microfinance, have announced a new initiative to meet the liquidity needs of Indian MFI’s. The group will make available $8 Mn in guarantee funds that it expects to generate a minimum of $16 Mn.
In the recent announcement, RBI has asked banks to continue providing funds to MFIs. Though there have been no cases reported of MFIs defaulting on loans as of now, bankers feel that regulation of MFIs is necessary.
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Tags
Hope Microcredit Finance (India) Pvt Ltd ,
Raju Kuriachen ,
Fusion Microfinance ,
Grameen Koota ,
Asomi Finance ,
Rural Impulse Fund I ,
Suryoday Microfinance ,
Lok Capital ,
Aavishkaar Goodwell ,
Bhartiya Samruddhi Finance Ltd ,
BFSL ,
Grameen Foundation ,
Mohammad ,
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 27/12/10 |
Hope Microcredit Finance - Incofin |
Venture Capital |
Rural impulse Fund II |
2.21 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 07/05/12 |
Private Equity |
International Finance Corporation |
Ujjivan Financial Services Private Limited |
9.35 |
Planned |
| 07/05/12 |
Private Equity |
International Finance Corporation |
Equitas Holdings Private Limited (Formerly Equitas Micro Finance India Private Limited) |
18.70 |
Planned |
| 18/04/12 |
Private Equity |
Looking For |
Janalakshmi Financial Services Private Limited |
9.65 |
Planned |
| 16/04/12 |
M&A |
Basix Group |
Unknown Asset |
- |
Planned |
Fund |
| Name | Corpus | Target Sector | Website | KeyContact |
| Rural impulse Fund II |
|
Micro Finance |
www.incofin.be |
|
Company |
| Name | Promoters | Office | Competitor | Website |
| Hope Microcredit Finance (India) Private Limited |
Raju kuriachand |
No.14/748, Sree Sakthi Complex, Coimbatore Road. |
|
hopemicrocredit.com |
